Amazon Frequently Returned Badge tracks high-return ASINs, but sellers criticize its lack of dispute options and failure to address return fraud.
Amazon sellers are grappling with a surge in fraudulent returns. This problem eats into profit margins and adds significant operational strain.
Now, Amazon has introduced a “frequently returned” badge and new return tracking features. While intended to help sellers monitor returns, these tools do not address the root cause of the problem.
Amazon needs to shift its focus from simply tracking returns to actively preventing fraud. Sellers demand tools to challenge false claims, identify repeat offenders, and address competitor manipulation.
Amazon Updates Dashboard to Help Sellers Manage Return Badge
Amazon has announced new updates to its Voice of the Customer dashboard, giving sellers enhanced tools to track and prevent the Amazon Frequently Returned Badge from appearing on their product listings.
The update includes:
- A list of ASINs currently displaying the frequently returned badge.
- Warnings for ASINs at risk of receiving the badge.
- Three-month and 12-month return rate data.
- Suggested return rate benchmarks to help prevent or remove the badge.
Amazon advises sellers to monitor ASINs marked as “at risk” and take proactive steps to reduce return rates, such as improving product quality and clarifying descriptions. The goal is to provide sellers with data-driven insights to enhance shopper satisfaction and minimize return-related penalties.
Sellers can access these insights by navigating to Performance > Voice of the Customer in Seller Central, where they will find a new Return badge displayed column with detailed return rate metrics.
Amazon Frequently Returned Badge, a badge of shame?
Amazon is committed to enhancing the shopping experience for its customers. To help customers make more informed purchase decisions, the company has introduced the Frequently Returned Item Badge on product detail pages. This badge highlights items with higher return rates compared to similar products.
An ASIN may receive this badge if its return rate surpasses that of similar items. The return rate is calculated based on the number of units shipped and the number of returns initiated by customers.
To help sellers manage return rates, the Voice of the Customer dashboard provides trailing 3-month and 12-month return rates, along with a suggested return rate to avoid the badge. By comparing these rates, sellers can understand why their ASINs may have been badged.
To avoid the frequently returned item badge, Amazon monitors return rates and will automatically remove the badge once the return rate approaches the suggested level. The company periodically reviews ASIN return rates and may remove the badge earlier if there is a consistent downward trend in returns, even if the return rate hasn’t yet reached the suggested level.
Sellers can take various actions to address return rates, such as ensuring accurate product descriptions, images, and size charts, and maintaining high product quality. ASINs with significant sales volume and higher return rates are at risk of receiving the badge.
These at-risk ASINs are identified in the Voice of the Customer dashboard, giving sellers time to address issues before the badge is applied.
Amazon Frequently Returned Badge sparks seller backlash
Amazon’s introduction of the “frequently returned” badge and related return tracking tools has sparked a wave of criticism from sellers, who argue that the new system fails to address the persistent problem of return fraud. While acknowledging the increased visibility into return data, sellers express deep concern that the update may inadvertently penalize legitimate businesses while leaving fraudulent activity unchecked.
Amazon Sellers Face Surge in Fraudulent Returns, Threatening Profitability
Amazon’s marketplace saw a significant rise in fraudulent product returns. This caused mounting operational challenges and eroded profit margins for independent sellers. Kiri Masters highlighted these issues in Forbes.
This surge underscored a growing tension. It was between Amazon’s customer-centric policies and the need for stronger seller protections. Competition intensified with the influx of low-cost Chinese sellers.
Sellers reported two primary patterns of return fraud.
- Customers returned damaged or used items claiming they arrived that way.
- Others returned completely different products while claiming they were the original item.
Customers exploited return reasons. They claimed “inaccurate description” to avoid restocking fees. This triggered automated product detail page reviews and even listing suspensions.
Fulfillment by Amazon (FBA) sellers faced particular challenges. Returned items went directly to Amazon’s warehouses. This limited their ability to inspect and document fraudulent claims.
Sellers spent significant time and resources contesting fraudulent returns. They filed claims and corresponded with Amazon support, often leading to price increases.
Newsweek"To obtain a refund, some individuals send back an item that's not what they ordered, knowing that the presence of the return label will initiate the process."
Calls for Action Against Return Abuse
According to Global Ecom Synergies, many sellers believe the new tools “fail to address the root issue of return fraud and abuse—and may even punish legitimate businesses.”
This sentiment is echoed by individual sellers, with one respondent on EcommerceBytes stating that “while more return insights seem helpful, this update doesn’t address the real issue – return abuse by bad actors.”
Sellers highlight the lack of mechanisms to dispute false return claims and the system’s inability to distinguish between genuine customer dissatisfaction and manipulation by competitors.
They argue that Amazon should prioritize measures to “track and limit frequent returners to prevent abuse,” “allow sellers to dispute incorrect return reasons before penalizing their listings,” and “identify patterns of competitor-driven returns to prevent unfair listing damage.”
The overwhelming sentiment is that the “frequently returned” badge, in its current form, acts as “another tool that punishes sellers while doing nothing to stop fraudulent returns and bad actors gaming the system.”
Sellers are calling on Amazon to address return fraud before implementing further penalties, demanding that the company protect legitimate sellers from the detrimental effects of unchecked abuse.
Protecting your Amazon business against high return rates
High return rates can hurt profits and account health. Since Amazon provides limited return insights, sellers must take proactive steps to minimize unnecessary returns.
1. Test the customer experience yourself
One of the best ways to understand why customers may be returning your product is to place an order yourself. This helps you:
Experience the packaging and shipping firsthand.
Identify potential damage risks (e.g., fragile items shipped in padded envelopes).
Assess whether the product matches its online description.
2. Analyze return data and compare with competitors
Track your NCX return rate (negative customer experience rate). If your return rate is higher than competitors, investigate potential reasons.
If your return rate is under 10% (depending on the category), it may not be a major concern, but consistent tracking is essential.
3. Use product inserts for customer support
A simple product insert inside the packaging can guide customers on how to resolve issues before returning the product.
Example: “Having trouble? Contact us for support before returning.”
This can help reduce returns caused by confusion or minor defects.
4. Implement post-purchase follow-ups
Use tools like Helium 10 Follow-Up to send automated emails after purchase.
Offer troubleshooting tips, setup guides, or direct customer support contact.
While many customers ignore emails, even a small percentage engaging can reduce returns.
5. Adjust expectations for complex products
Some categories naturally have higher return rates (e.g., apparel can see up to 25%).
If selling complex products like electronics or security devices, ensure instructions are clear to minimize user confusion.
6. Track return rate trends & set action thresholds
Establish a return rate monitoring system:
Under 10%: Generally acceptable.
10-11%: Monitor closely.
Above 11%: Investigate and take corrective action.
Compare with industry averages—electronics/security products often see 15%+ return rates.
7. Leverage UGC and ads to set clear expectations
User-generated content (UGC) videos on TikTok, Amazon Posts, or product pages help customers see the product in action before purchasing.
Clear, realistic marketing reduces “expectation vs. reality” returns.
While these steps offer a strong foundation, businesses facing persistent high return rates might explore strategic support from an Amazon agency, capable of developing comprehensive solutions tailored to the specific challenges of the marketplace.
